AAVE Price

AAVE is a decentralized lending protocol built on Ethereum that allows users to borrow and lend various cryptocurrencies. It enables users to earn interest by depositing digital assets into liquidity pools or borrow assets by providing collateral. AAVE uses smart contracts to automate lending and borrowing processes, removing the need for intermediaries. The native token AAVE is used for governance and as collateral. As of 2026-02-05, AAVE is ranked 45 with a price of $121.71 and a 24-hour trading volume of $17.25M. The total supply of AAVE is 16M AAVE, with 15.18M AAVE in circulation. AAVE has gained popularity in the DeFi space for its innovative features like flash loans and its focus on creating a transparent and open infrastructure for decentralized finance.

AAVE was created in November 2017 when Stani Kulechov led a development team to launch ETHLend through an Initial Coin Offering (ICO). In September 2018, ETHLend was rebranded as AAVE. The AAVE token itself was introduced in October 2020 through an improvement proposal (AIP1) that converted the previous LEND token to AAVE at a 100:1 ratio. This conversion occurred on October 3, 2020, at Ethereum block height 10978863. Since then, AAVE has grown to become one of the leading decentralized lending protocols in the cryptocurrency space, currently ranked 45 by market capitalization as of 2026-02-05.

AAVE was founded by Stani Kulechov, who led the development team that launched ETHLend in November 2017. ETHLend was later rebranded as AAVE in September 2018. Kulechov remains the CEO and founder of AAVE. The AAVE team is based in London and consists of 18 industry leaders focused on creating an open infrastructure for decentralized finance.

AAVE works as a decentralized lending protocol on the Ethereum blockchain. Users can deposit crypto assets to earn interest or borrow against their collateral. Key features include: 1. Liquidity pools: Lenders provide assets to pools, which borrowers can access. 2. Interest rates: Algorithmically adjusted based on supply and demand. 3. Flash loans: Uncollateralized loans that must be repaid within one transaction block. 4. Governance: AAVE token holders can vote on protocol upgrades and parameters. 5. Safety modules: A reserve fund to protect against shortfall events. 6. Multiple asset support: Users can interact with various cryptocurrencies and stablecoins. 7. Cross-chain functionality: Available on multiple blockchain networks beyond Ethereum. The protocol utilizes smart contracts to automate lending and borrowing processes, eliminating intermediaries. This allows for more efficient and accessible financial services in the decentralized finance (DeFi) ecosystem. As of 2026-02-05, AAVE has a market cap of $1.84B and is trading at $121.71. The total supply is 16M AAVE tokens, with 15.18M AAVE in circulation.

AAVE is built on the Ethereum blockchain using smart contract technology. Its technical architecture includes: 1. Lending pools: Smart contracts that manage deposits and loans of various crypto assets. 2. aTokens: Interest-bearing tokens minted when users deposit assets, representing the user's share in the lending pool. 3. Flash loans: Uncollateralized loans that must be repaid within a single transaction block. 4. Rate switching: Ability to switch between stable and variable interest rates. 5. Decentralized governance: AAVE token holders can vote on protocol upgrades and parameters. 6. Price oracles: Integration with Chainlink oracles to obtain real-time asset prices. 7. Risk management: Liquidation mechanisms and over-collateralization to protect lenders. 8. Cross-chain functionality: Deployments on multiple blockchains like Polygon, Avalanche, and Fantom. 9. Safety module: Staking mechanism to provide security for the protocol. This architecture enables AAVE to function as a decentralized, non-custodial liquidity protocol for lending and borrowing crypto assets efficiently and securely.

The future of AAVE looks promising with several key developments on its roadmap: 1. Expansion to new blockchains: AAVE plans to deploy on additional Layer 1 and Layer 2 networks to increase accessibility and reduce transaction costs. 2. Enhanced governance: The protocol aims to further decentralize decision-making through improvements to its governance model. 3. New financial products: AAVE is exploring innovative DeFi offerings like undercollateralized loans and credit delegation. 4. Improved risk management: Ongoing upgrades to the risk parameters and liquidation mechanisms to enhance protocol safety. 5. Cross-chain interoperability: Enabling seamless asset transfers and liquidity provision across multiple blockchain ecosystems. 6. Integration with traditional finance: Partnerships with TradFi institutions to bridge DeFi and CeFi. 7. Sustainability initiatives: Implementing eco-friendly practices and supporting green crypto projects. Price predictions: 2027: $$131.8 2031: $$163.78 2036: $-- As AAVE continues to innovate and expand its ecosystem, it aims to cement its position as a leading DeFi protocol and drive mainstream adoption of decentralized finance.